SBI PO Descriptive – Essay – Cashless Payments – Pros & Cons

Hello and welcome to exampundit . We rolled out the SBI PO Descriptive Contest 2 days back and we got a lot of responses. We will be publishing the BEST of the Lot. But that does not mean, your one was Bad. The topic “Cashless Payments – Pros & Cons” is aced by Sourav.

Every cashless payment facility
lets us to manage our finances in the comfort of our home or our office as per
our convenience. It is a Self-Service Channel, which is available 24 hours a
day and 365 days a year in an absolutely simple, friendly but secured
environment. In cashless payment, a mere touch of a button or click of a mouse
makes us accessible to a host of any money transaction services.

The Cashless
Web App is designed for PCs, Tablets and Smart phones, it allows users online
access to their accounts. Even CCEA approves measures to promote payments
through cards and other electronic means to check tax evasion and transition
towards a cashless economy.

Pros.:

Cashless
Payment eliminates cash handling costs – so no need for cash floats and no cash
means all the headaches and worries about handling it are gone.

As it is fully
secured to the highest standards, meaning customers can have complete peace of
mind when using it through App.

This system also saves precious time – so no
cash balancing required.

The average
life span of a paper note is near about five years so going through electronic
procedure reduces the cost of producing physical currency.

Studies show
that sales increase when consumers can pay with a stored-value card, this is
because people often forego small purchases when they do not have cash on them.

It drives the
development and modernization of the payment system, promotes transparency and
accountability and reduces transaction costs.

Cons.:

If any
consumer loses cards, it may take a long while to procure another.

Its
ingeniosity is only questionable when it comes to cyber fraud and hacking –
like any other network technology, there is a high chance that a hacker is
working on ways to exploit the system and they can also hack PIN.

So, it is clear that it is too
difficult to make comment on this issue. No cashless systems have fully
replaced cash yet, but many influential technology and finance companies
believe that this is the next big thing. So it is also an important fact that every
nation needs a cashless society at present time as a way to standardize its
economy.